Senior Living News Wire

Affordable senior housing will be part of the social safety net going forward and could even help solve federal budget woes, says a nonprofit organization that’s utilizing government programs and grants in a concerted effort to meet the upcoming “tremendous need” for affordable housing as the nation’s senior population expands.  

National Church Residences, based in Columbus, Ohio, is the largest sponsor of the Department of Housing and Urban Development’s Supportive Housing for the Elderly (Section 202) program, with a growth strategy that includes participating in tax credit programs along with other federal housing programs and local housing grants.

Their efforts are similar to those of California-based GHC Housing Partners, a private company that’s buying up Section 8 housing (government-subsidized rental apartments for low-income people, including seniors) to “reshape the face of affordable housing” and fill a widening gap between the amount of available affordable senior housing and the growing number of seniors who will potentially need it.

A new model under development places housing and community services under the same roof, and NCR is “very actively” involved in trying to situate adult day care either in or close by senior housing, says Tom Slemmer, president and CEO of NCR, naming an Ohio project where 100 units of senior housing are being co-located with an adult day care center.

“We’re really engaged in community-based services, trying to develop the intersection of housing and services while solving some of the federal budget problems,” he says. “A lot of it is driven by demographic problems with the costs of healthcare escalating.”

Cost-effectiveness of supportive services

The Supportive Housing for the Elderly program shares similarities with the assisted living concept in that it provides housing with supportive services for the elderly. Slemmer says his company is “most interested” in HUD’s Assisted Living Conversion Program and has been a leader in receiving grants for converting housing units into affordable assisted living to allow elderly residents to age in place. 

He says that through the program, “HUD is trying to demonstrate that housing with services can be a lower-cost option than a nursing home.”

Assisted living comes with a much lower price tag than nursing home stays, which are often funded by Medicaid. In 2011, assisted living facilities cost an average $41,714 a year—significantly less than the $78,110 cost of a semi-private nursing home suite, according to a MetLife Mature Market Institute study. 

Even though assisted living generally costs less than nursing home care, it’s primarily private pay and can pose a burden for many. Virtually all of NCR’s completed projects and communities for low-income seniors are 100% occupied, according to Slemmer, pointing toward the need for more affordable senior living options. 

Fighting for funding

However, the nonprofit is being forced to deal with those federal budget woes it’s seeking to solve, which can affect the availability of funding. Similar to many other government departments, HUD’s funding has been cut in recent appropriation bills, affecting its various senior housing programs and making it harder for organizations like NCR to carry out projects.

“[Funding] was zeroed out last year, and there was a big struggle in the appropriations process to get it funded for the future,” says Slemmer.

But it may be in the government’s best interests to preserve its senior housing programs. 

“Senior housing is a bargain because it’s providing lower-cost options for seniors,” Slemmer says he’s been telling appropriators. “It will be part of the social safety net going forward, but we’re producing less today than we ever have in the last 50 years.” 

That’s a big concern for those in the senior housing field, Slemmer continues. 

In the Pipeline

Despite funding struggles, five NCR projects have been awarded $27 million since 2009, and Slemmer says his organization has been using tax credit programs as well as HUD’s Section 223 loan program.

NCR is using capital advances through HUD’s Section 202 program to build a 66-unit project at the King’s Dominion in Lubbock, Tex., and other Section 202 projects are being planned for Pittsburgh, Pa. and St. Louis, Mo. 

In Atlanta, Ga., the nonprofit is using Low Income Housing Tax Credits (LIHTC) to build the 100-unit Baptist Gardens senior housing community, while the 48-unit Betmar Village is being financed with a mix of Section 202 funds, bond financing, and LIHTC.

Written by Alyssa Gerace

The Midwest is a key area for growth when it comes to senior housing development thanks to a lack of supply compared to other geographic locations and a growing number of seniors, two analysts say.

And while the Great Recession hasn’t made it easy for many senior-oriented projects to get construction financing, the Toledo, Ohio area has been experiencing a senior housing boom, reports the Toledo Blade. 

 ”We see it with the baby boomers aging and retiring and people living longer that the demand is there and the money is loosening up,” said Gary Haas, vice president of contracts and administration for Rudolph/Libbe Inc. ”There are more of these projects going on compared to the overall commercial market.”

In 2008, David Lynn and Tim Wang, two analysts for Clarion Partners Inc., predicted that there would be new opportunities for investors in the senior housing market, a niche they said would heat up and begin to take off, starting in 2010 and continuing through 2015.

One of the areas for growth: the Midwest.

They reasoned that there already was significantly more senior housing in the South and West, and that an increasing number of seniors were choosing to stay in their present states rather than relocate to the South and West.

“As far as seniors or the elderly choosing to age in place, that’s probably true now,” Mr. Morgan said. “But the other dynamic is seniors want to move near their adult children or their children want to move them near them. So if you have a growing [area] with professionals in their 30s or 40s and with parents in their 70s or 80s, they may want to move their parents near them.” That is leading to growth in senior housing in several major Midwest metro areas, [Jay] Morgan [senior vice president of finance at Toledo-based Health Care REIT] added.

The article details several projects that have broken ground in recent weeks, along with others that are in the pipeline. Read the full piece here. 

Written by Alyssa Gerace

Do you and your colleagues do good work? Of course you do. But why is that? You care for your residents. Check. You care about professionalism. Check. Maybe you just don’t know any other way. Check.

Long-term care operators are increasing their commitment to gathering, storing, accessing and analyzing data. But many firms fail to harness that data in ways that lead to good business decisions, according to a new Corporate Executive Board report.

Prior to adopting McKesson’s Mobile Manager, Bob Lassen, the clinical director of pharmacies for Five Star SeniorLiving, says he and other pharmacists at the company never really knew what to expect from their medication suppliers.

Implementing an effective quality measurement system is paramount in improving care and lowering costs in the dual eligible population, according to a new stakeholder report.

As assisted living regulations evolve and tighten, Medicare and Medicaid reimbursements fluctuate, and healthcare reform begins to take effect, many states are facing their own challenges as they continue to develop, operate, and implement new rules and programs. Here is a collection of long-term care related stories from across the nation.

From WRDW-TV (Augusta, Ga.)—Georgia Nursing Home for Veterans to Start Charging for Service

“A service that was free will now go to at least $700 a month for the close to 200 veterans living at the Georgia War Veterans Nursing Home,” reports WRDW-TV. “It has been a free service for the men and women who served our country for more than 40 years, but now veterans will have to pay to stay there—all thanks to House Bill 535. The fee is expected to start this fall. It will be used for operations. Building managers say they hope the new fee will allow them to make renovations and house more veterans.” Read more…

From the Baltimore Sun—Maryland Long-Term Care Facility Positioning Itself for Future of Healthcare

A Roland Park, Md. long-term and memory care facility is positioning itself toward community-based care with an eye toward the future of health care, reports the Baltimore Sun.

“Keswick “will refocus on community-based health services,”[Carmel] Roques [CEO of Keswick Multi-Care Center] said in an interview May 16. One of the most noteworthy aspects of that new approach is that Keswick plans to take in some former heart patients from Union Memorial Hospital for rehabilitative care. 

Roques is also planning to institute a program in which each outpatient at Keswick would be assigned a “wellness coach,” who would be the point person for that client’s needs, she said.

And she plans to expand the role of Keswick’s subsidiary, Keswick at Home, to provide non-nursing services such as providing meals, shopping assistance, transportation and housekeeping, as well as nursing supervision.” 

Read more…

From Boston.com—Massachusetts Proposal Sets Standards for Memory Care in Nursing Homes

“A loophole in Massachusetts law that allows nursing homes to advertise specialized Alzheimer’s and dementia care units, even though their workers may have no training in caring for such residents, is one step closer to being closed,” reports Boston.com. “A proposal that would establish minimum standards for such units was approved by the House of Representatives Wednesday, and is headed for the state Senate. The bill would require the Massachusetts Department of Public Health, which regulates nursing homes, to establish minimum standards for facilities with dementia care units.” Read more…

From the Associated Press—Missouri Governor to Sign Legislation for Veterans Nursing Homes

“Missouri Governor Jay Nixon is preparing to sign legislation that will provide a dedicated funding source for Missouri’s veterans nursing homes,” reports the Associated Press. “The legislation redirects casino fees that now benefit early childhood programs to a trust fund for the Missouri Veterans’ Commission.” Read more…

From Kentucky.com—Nursing Home Chain Pulls Out of Kentucky

“A major nursing home chain said it no longer will operate in Kentucky because of increased litigation and the 2012 General Assembly’s failure to pass a law making it more difficult to file lawsuits against nursing homes,” reports the Lexington Herald-Leader. “Extendicare Health Services Inc. has entered into an agreement to lease all 21 of its skilled nursing centers in Kentucky — representing 1,762 beds — to an unidentified long-term care operator based in Texas. Extendicare is based in Ontario, Canada, with U.S. headquarters in Milwaukee.” Read more…

From The Columbus Dispatch—Ohio Governor Will Veto $30 Million Nursing Home Budget

“Republican governor [John Kasich] is preparing to veto the $30 million for nursing homes that GOP lawmakers added to the mid-biennium review, according to several sources close to him who spoke to The Dispatch this week,” reports The Columbus Dispatch. “Such a move would hardly be a surprise: Kasich said “that’s not going to happen” when House Republicans first added the $30 million to the budget bill in April for nursing homes meeting additional quality standards. And last year, Kasich withstood a brief negative ad campaign by the nursing-home industry in leading the charge to reduce the industry’s state funding by $360 million in the current two-year budget.” Read more…

From NJ.com—New Jersey Nursing Home Workers Picketing for Contracts

“Nursing home workers represented by 1199SEIU United Healthcare Workers East picketed yesterday for a new contract at three facilities in New Jersey, including at the Manhattanview Health Care Center on Hudson Avenue,” reports NJ.com. “Our first bargaining session took place in May 2011, we’ve had six sessions since then, and there hasn’t been any progress,” said James Canonge, a union spokesman, noting the union represents roughly 85 employees at Manhattanview. Three facilities that were picketed yesterday Manhattanview, Teaneck Nursing Center, and Amboy Care in Perth Amboy are all owned by Hackensack-based Broadway Healthcare Management.” Read more…

(PR Newswire)—Pa. to Require Electronic Fingerprinting for Long-Term Care Workplace Applicants

“The Pennsylvania Department of Aging will soon begin using an electronic fingerprinting process to screen people applying to work in a long-term care facility or home health care agency.  As of June 4, manually submitted background check requests will no longer be accepted by the department. Previously, the department processed fingerprints manually. It is moving toward a more efficient and effective method that will be compatible with law enforcement and other screening processes.” Read more…

The Department of Health and Human Services is making $25 million available to give older adults better access to long-term services and supports in their homes and communities. 

Aging and Disability Resources Centers will benefit from the funding in the next one to three years under the Affordable Care Act, says HHS Secretary Kathleen Sebelius. The funding will help the centers make it easier for people to learn about and access services available in their area, from home care and social supports for daily living to nursing home care. 

“We are pleased to make it easier for Americans to get the care and support they need where they need it,” said Secretary Sebelius. “This opportunity, supported by the new health care law, will help states continue to improve their long-term service and support systems.”

The Veterans’ Health Administration (VHA) is making another $27 million of funding available for similar services to veterans.

The initiative, called the Aging and Disability Resource Center Program, is established through a partnership between the newly-formed Administration for Community Living (ACL), the Centers for Medicare & Medicaid Services, and the Department of Veterans Affairs’ VHA. 

State agencies will be better able to administer and coordinate state and federal long-term service and support (LTSS) programs for seniors with the help of the ADRC program, says HHS. 

About eight states will compete to participate in accelerating the development of “single entry point models” in the next couple of years. These “one-stop shop” programs will provide one-on-one counseling to consumers weighing their LTSS options. 

“Options counseling is an important tool that can provide custom-tailored advice about all the services available in a person’s community, reducing unnecessary time and energy spent searching for answers in a variety of places,” said Kathy Greenlee, ACL’s administrator and assistant secretary of aging. 

ACL will provide funding for up to 40 states in the next year to support current ADRC efforts, in addition to whichever eight states are selected to accelerate program development. This will help them develop a “sustainable infrastructure that is critical to ensuring ongoing coordinated access to services,” says HHS.

Written by Alyssa Gerace

A convalescent home owned and operated by Lewis and Clark County in Montana was forced to privatize and was sold to East Coast-based Apple Rehab West for $2.8 million in a deal that closed on Friday, reports the Helena Independent Record.

Similar to many other county-owned nursing homes across the country, Cooney Convalescent Home was struggling to turn a profit. It loses between $200,000 and $400,000 a year and carries a $1.5 million to $2 million debt.

The county has been trying to figure out how to manage the situation for the past few years, says the Independent Record, and recently decided that privatizing was the best option, although it did so “with heavy hearts” after having run the facility for more than a century.  

Competition from assisted living facilities in the area has negatively affected the 88-bed Cooney Convalescent Home’s occupancy, and it’s no longer at capacity. In fact, says the article, there are only about 40-50 residents, while it needs 65 “just to keep the doors open,” according to the County Administrator. 

Apple Rehab will make a $500,000 down payment to the county, followed by three annual $200,000 payments before making one final balloon payment. The initial plan requires the private company to retain the nursing home’s employees at their current salaries.

Get full coverage at the Helena Independent Record. 

Written by Alyssa Gerace

Medicare’s competitive bidding program for durable medical equipment was not built to last, new research asserts.

National healthcare costs could jump 7.5% in 2013, which is a faster pace than rates of inflation and the gross domestic product, a new report finds.